This document provides an overview of Diageo's reputation strategy and initiatives. The key points are:
1) Diageo will deliver reputation masterclasses to over 80 leaders to build capability in managing reputation across key markets and functions.
2) A global reputation tracking model will be implemented to benchmark reputation and identify material issues in 21 priority markets.
3) The goal is for reputation to be embedded across the business and for Diageo and its industry to be trusted partners in discussions around alcohol. Diageo aims to empower communities and celebrate life every day.
3. 25,000talented employees in around 80countries
Over £10bnturnover
Over £1bnoperating profit
Diageo invests over £1.5bn
in marketing and promotion each year
42%of business
in fastest growing
markets – accounting
for 21%of
operating profit growth
50%of net sales
in fast growing markets
expected from 2015
4. 1986
Distillers
Company
Limited
taken over
by Guinness
and renamed
United
Distillers
1884
James Buchanan establishes his business
1877
DCL established by John Haig of
Cameronbridge distillery and others
1871
James & Samuel Greenlees, of Old Parr,
establish their business
1863
William Sanderson, creator of
Vat 69 establishes his business
1825
Thomas Sandeman starts trading
& Arthur Bell joins business in 1845
1820
John Walker opens for business
1749
Justerini & Brooks founded
1627
Haig family start distilling
1890
White Horse trademark registered
1997
Diageo formed
2001
Seagram
aquisition
7. EU calling for
greater corporate
accountability
Top companies in India
must spend 2% of profit
on CSR
RSA requires firms to
have Social & Ethics
Committees
China is toughening
environmental legislation
Elsewhere sustainable
reporting requirements
are in place
MNCs to protect human
rights along whole supply
chain
8. 66% consumers expect brands to
be sustainable*
46% consumers are prepared to
pay a premium for brands seen as
sustainable*
Expectations are particularly strong
among millennials and consumers
in high growth markets**
*Source: ACNielsen 2012
** Futures Group 2013
CONSUMERS: CUSTOMERS:
Walmart to disclose
sustainability scores on shelf
labels for 70% of products
Safeway wine suppliers
rejected on environmental
grounds
Sainsbury’s and Marks &
Spencer to reduce abv of
alcohol products and
increase fair trade sales
9. Reputation Trackers
2012
Ireland: 4.2
GB: 4.1
Scotland: 4.4
marked / 5
scores > 3 +ve
Diageo Hellas
Platinum CSR award
(90% + score)
Ranked 2nd in food and
beverage, scored 4.8/5
• Ireland & Nigeria No. 1
• Portugal 3rd
• Mexico 4th
• Germany & Venezuela 7th
• Greece top ten
14. Ambition: To create the best performing, most trusted
and respected consumer company in the world
WHAT WE
WILL
ACHIEVE
FOCUS
AREA
Transform reputation in every market
KEY
PRIORITIES
Build Brand Diageo
Broaden accountability
to 21 GMs + teams
Lead on Alcohol in
Society
Other S&R standards
and programmes
Win the War for Talent
KEY
ENABLERS Build and Measure Accountability and Capability
Equity + Price + Share
growth in every priority
brand market unit
Annual operating margin
expansion across every
activity
Transformed reputation
in every market through
enduring stakeholder
partnerships and
exemplary conduct
Super-engaged
people everywhere
15. LEADERSHIP
ALCOHOL IN SOCIETY
Advocacy | Enduring partnerships | Ambitious global targets
CRITICAL BUSINESS FOUNDATION
People, Parity and Sustainable Sourcing:
Health and safety, health and wellness, human rights, diversity, fair wages, fair tax, carbon,
waste, packaging, water, local investment, sustainable agriculture.
Underpinned by core values, ethics, exemplary conduct, governance and compliance.
SKILLS & EMPOWERMENT
• Total supply chain approach
• Focus on customers and farmers
• Apply gender lens
• Partnership approach
• Demonstrate strong ROI
WATER STEWARDSHIP
• We care about water
• Specific interventions in
challenged markets or
crisis situations
• Advocacy and partnership approach
BEST PRACTICE PROGRAMMES
16. • Investors
• Employees
• Government and NGOs
• Commercial Partners (Customers, Suppliers, Partners…)
• Community and Special Interest Groups
• Media
• Consumers of our brands
17. US SPIRITS AND WINE
OPEN STATES
NAM
US SPIRITS AND WINE
CONTROL STATES
DIAGEO GUINNESS USA
(DGUSA)
CANADA
VENEZUELA
COLOMBIA
ANDEAN
FREE TRADE
ZONE
WEST LAC
MEXICO
BRAZIL
PUB
URUGUAY
PARAGUAY
GB
WESTERN EUROPE
GERMANY
IBERIA
IRELAND
ITALY
BENELUX
NORDICS
GREECE
MHD
RUSSIA
POLAND
RUSSIA & E EE
PARTNER
MARKETS
KENYA
EAST AFRICA
RWANDA
BURUNDI
SOUTH SUDAN
TANZANIA
UGANDA
GHANA
AFRICA REGIONAL MARKETS
DISA
CAMEROON
HUB
CHINA
GREATER CHINA
AUSTRALASIA
HONG
KONG
TAIWAN
VIETNAM
THAILAND
SOUTH EAST ASIA
INDONESIA
KOREA JAPAN
NORTH ASIA
PHILIPPINES
MALAYSIA
ETHIOPIA
NIGERIA SOUTH AFRICA
GTME INDIA
TURKEY
ESTABLISHED MARKETS
EMERGING MARKETS
STRONG REPUTATION
CRITICAL OPPORTUNITY
RESERVE
DGCE WINES
JAMAICA
SOUTH LAC
CENTRAL KEY
CENTRAL
VENTURE
SINGAPORE
18. Lack of economic growth and unemployment
Increasing competition for raw materials and need for
sustainable supply chain
Alcohol-related health issues
Regulation and taxation of alcohol
Changing consumer
consumption patterns
Increasing competition
concentration of businesses
19.
20.
21. SETS A
COMPELLING
VISION
SEE RESPONSIBILITY
AND SUSTAINABILITY
AND CENTRAL TO A
HEALTHY BUSINESS
STRONG
INFLUENCING &
NETWORKING
SKILLS
RADAR FOR
FORESIGHT/ RISK
AND INSIGHT
GREAT
STORY TELLERS
UNDERSTAND
SOCIAL MEDIA AGENDA
& REAL TIME
COMMUNICATIONS
COALITION
BUILDERs AND
GOOD
NEGOTIATORs
ACCOUNTABLE
ON TOP OF THE
NEWS AGENDA
CONSISTENTLY SETS
AND ARTICULATES A
COMPELLING VISION
RADAR FOR
RISK
AND INSIGHT
22. Keymodules
ESSENTIALS OF
REPUTATION
MANAGEMENT
MESSAGING &
NARRATIVE
INTERNAL
LEADERSHIP
THE WAR FOR
TALENT
CSR &
SUSTAINABILITY
ALCOHOL &
SOCIETY
PUBLIC POLICY
& COALITION-
BUILDING
ENGAGING
EXPERTS &
SEEKING
ENDORSEMENT
LIVING & LEADING
DIAGEO’S VALUES
BUILDING BRAND
DIAGEO
Live!Challenges
SALES AND
MARKETING
FREEDOMS
A NEW TAX NEW
PRODUCT
INNOVATION
DEEP
DISCOUNTING
Attendees
21 General Managers Local management teams
Local Corporate Relations
teams (induction)
What? The Diageo Reputation Master Class
FACTORY
OPENING/
CLOSING
PRODUCT
RECALL
23. US SPIRITS AND WINE
OPEN STATES
US SPIRITS AND WINE
CONTROL STATES
DIAGEO GUINNESS USA
(DGUSA)
CANADA
VENEZUELA
COLOMBIA
FREE TRADE
ZONE
MEXICO
BRAZIL
URUGUAY
PARAGUAY
GB
GERMANY
IBERIA
IRELAND
ITALY
BENELUX
NORDICS
GREECE
MHD
RUSSIA
POLAND
PARTNER
MARKETS
KENYA
RWANDA
BURUNDI
SOUTH SUDAN
TANZANIA
UGANDA
GHANA
DISA
CAMEROON
HUB
CHINA
AUSTRALASIA
HONG
KONG
TAIWAN
VIETNAM
THAILAND
INDONESIA
KOREA JAPAN
PHILIPPINES
MALAYSIA
ETHIOPIA
NIGERIA
SOUTH AFRICA
GTME INDIA
TURKEY
ESTABLISHED MARKETS
EMERGING MARKETS
STRONG REPUTATION
CRITICAL OPPORTUNITY
RESERVE
DGCE WINES
JAMAICA
SOUTH LAC
CENTRAL KEY
CENTRAL
VENTURE SINGAPORE
1. NAM 2. WE 3. Russia & E EE
4. Greater China & NA
5. SE Asia
6. SA & Africa regional
8. East Africa
9. WLAT & MEXICO10. PUB & ANDEAN
7. GTME, IN, AUS
Ten, 2-day regional Master Class sessions will immerse 80+ Diageo leaders in reputation capability
26. Behavioural
intentions & trust
Materiality,
Foresight
Competitor
benchmark
Source rankingReputation
metrics
Engagement
preferences
Media monitoring
and message output
tracking
Integrated with Values
Survey
TAG and other
stakeholder feedback
mechanisms
1. Roll out Diageo global reputation tracker model
2. 2013 benchmark study in 21 markets supply and demand
3. Representative sample of respondents agreed per market across
our main stakeholder groups – qualitative and quantitative approach,
interviews and online
4. Integrate existing key research
5. Develop functional and leadership performance scorecards
6. Performance tracking and incentives – development towards
achieving our 2017 reputation and business goals
7. Tailor research to individual market needs
8. Comprehensive research every 2 years and deep dives and pulse
survey every other year
27. Brand Diageo
21 GMs as CEOs
Lead on Alcohol
in Society
Water of Life
Learning for Life
The world’s most trusted and respected
consumer company
Reputation management embedded
across our business
Diageo and our industry are trusted
partners in the alcohol debate
We care about the safety and quality
of life of people and communities…
…and we empower them to celebrate
life every day, everywhere
Trust (Tax)
We are trusted to lead by the spirit as
well as the letter of the law
28.
29. Reputation is
becoming a
critical business
driver
Reputation
strategies are
more robust and
thoughtful
Leadership
expect-ations
are increasing
Leadership
engagement is
increasing
Leadership
reputation
capability is
required
Leadership
account-ability
is increasing -
KPIs &
scorecards